Z Earnings Prediction
The chart below shows how Z performed 10 days before and after its earnings report, based on data from the past quarters. Typically, Z sees a +2.82% change in stock price 10 days leading up to the earnings, and a +7.12% change 10 days following the report. On the earnings day itself, the stock moves by -1.37%. This data can give you a slight idea of what to expect for the next quarter's release.
Z Key Earning Data
Z Earnings Analysis
Positive
Strong Q1 Performance: Zillow exceeded Q1 outlook with strong top-line growth, achieving GAAP profitability for the quarter.
Q1 Revenue Surge: Total Q1 revenue reached $598 million, up 13% year-over-year, continuing double-digit revenue growth.
For Sale Revenue Increase: For Sale category revenue was $458 million, up 8% year-over-year, with Mortgages revenue up 32%.
Record Rentals Revenue Growth: Rentals revenue reached an all-time high of $129 million in Q1, up 33% year-over-year.
Q1 Adjusted EBITDA Growth: Adjusted EBITDA for Q1 was $153 million, with an EBITDA margin of 26%, a 200 basis point year-over-year improvement.
Housing Super App Strategy: Zillow's housing super app strategy is effectively connecting buyers and sellers, increasing revenue per transaction.
Market Connection Growth: Enhanced Markets connections increased to 24% of overall connections in Q1, up from 21% in Q4.
Increased Agent Collaboration: 70% of movers using Zillow Home Loans are also working with a Premier Agent partner, up from 60% a year ago.
User Engagement Success: More than 1.5 million customers have enrolled in the BuyAbility feature since its launch, indicating strong user engagement.
Real Time Touring Growth: Real Time Touring accounted for 36% of all connections in Q1, up from 12% a year ago, enhancing user experience.
Showcase Listings Advantage: Showcase listings are winning 30% more listings than non-Showcase listings, and sell faster for higher prices.
Rental Marketplace Expansion: Zillow Rentals is becoming a comprehensive marketplace with over 2 million active Rental listings, attracting more multifamily properties.
Multifamily Rentals Revenue Surge: Multifamily Rentals revenue grew 47% in Q1, driven by increased property count and higher-tier advertising subscriptions.
Partnership for Rental Growth: Zillow's partnership with Redfin for Rentals is expected to enhance value proposition and drive substantial growth in leads and revenue.
Strong Financial Position: The company ended Q1 with $1.6 billion in cash and investments, demonstrating strong financial health.
Negative
Limited Profitability Analysis: Despite achieving GAAP profitability, the company reported a modest net income of only $8 million, which is just 1% of total revenue, indicating limited profitability relative to revenue size.
Revenue Growth Comparison: The For Sale revenue growth of 8% year-over-year was below the industry growth rate of 3% as reported by NAR, suggesting that Zillow is not outpacing the overall market as effectively as it could.
High-End Market Impact: The company noted that the high-end market contributed significantly to industry transaction value growth, implying that Zillow's performance may be reliant on a segment that is not representative of the broader market.
Rental Revenue Growth Challenges: While Rentals revenue grew significantly, the company is still facing challenges in the housing market, with expectations of continued macro uncertainty affecting overall performance.
Rising EBITDA Expenses: EBITDA expenses are projected to increase significantly in Q2, from $445 million in Q1 to an estimated $495 million, indicating rising costs that could impact profitability moving forward.
Cash and Investments Decline: The company ended Q1 with a decrease in cash and investments from $1.9 billion to $1.6 billion, primarily due to share repurchases and payments, which raises concerns about liquidity and cash flow management.
Z FAQs
How does Z typically perform around its earnings report dates?
Z's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +2.82% change leading up to the report and a +7.12% change in the 10 days following the release.
Is Zillow Group Inc (Z) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
Z Earning Call Sentiment
Zillow Group, Inc. (Z) Q1 2025 Earnings Call Transcript

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